Bidder Beware: With Guests Max Bazerman & Glenye Cain Oakford
Have you ever bid in a competitive auction\u2014say, on eBay\u2014and won the item, only to see a similar item for sale elsewhere at a lower price? If so, you may have fallen prey to the winner\u2019s curse.\n\nIn this episode of Choiceology with Katy Milkman, we look at bias that can lead people to overpay in auctions and other types of negotiations.\n\nWe begin with the story of Havre de Grace. This prize filly had an exceptionally successful career as a racehorse before being auctioned as a broodmare. Expectations were high for the sale because Havre de Grace had such a strong thoroughbred pedigree. But the way the auction proceeded surprised everyone in the room.\n\nGlenye Cain Oakford was at the Fasig-Tipton November Mixed Sale and paints a vivid picture of a dramatic bidding process. She is an award-winning journalist, writer, and videographer based in Lexington, Kentucky.\n\nMax Bazerman has contributed important research to the study of the winner\u2019s curse. He joins Katy to discuss the ways in which this phenomenon can affect purchasing decisions around everything from jewelry to oil leases\u2014and how the bias can diminish your ability to negotiate successfully.